Decentralised clearing

Ever since the financial crisis, regulators have been pushing central clearing to remove counterparty risk and reduce systemic risk. However, as a higher proportion of swaps is cleared through CCPs, clearing houses are concentrating risk on their own balance sheet.

Synswap disrupts this central clearing model and uses blockchain technology to disintermediate CCPs.

Decentralised clearing retains all the benefits from central clearing – reduction of counterparty risk exposure, multilateral netting, price transparency – while removing both concentration and counterparty risk from CCPs.